When you think about the homebuying process, your consider Realtors, Lenders, houses, interest rates, monthly payments and more right? But what about your insurance? I tell my clients to have insurance in place within 7 days of contract acceptance. It doesn't matter that your closing date isn't for another 30-60 days.
Lack of insurance in a timely manner WILL DELAY YOUR CLOSING! That's right. Insurance plays a bigger part in the home buying process than you might realize. Some of the factors that affect insurance and rates are:
The age of the home Flood Zones Wind mitigations
The age of the roof Construction Siding The type of roof, (flat, hip, gable)
Location of property COBRA Zones STORMS?
Storms? Really? Yes, here in Florida for example, our hurricane season runs from June-November, did you know that if you fail to "bind" your insurance, and there is a named storm like Debby recently, insurance companies will stop writing policies. So if you had a closing date scheduled during that week, you would not have been able to close on your new home and get the keys. You may have to find other accommodations such as a hotel or even family if you had to vacate your previous residence.
The age of your home or roof, may increase your policy amount and thereby cause an increase in your monthly payment. Which could be considerably higher than you had anticipated. So you want to shop around early so there are no surprises at the end.
Advising you of things like these that can all affect you financially is another benefit of being represented by a Real Estate Professional. Each home is different, and requires it's own unique disclosures and forms, and advice.
In Florida, we also have a clause built into the real estate purchase and sales contract that provides protections for the buyer if they are unable to find affordable insurance. And since it seems that insurance carriers are asking for rate increases every year, that's a pretty important clause to be aware of.
But you don't have to wait until you are under contract to get an insurance quote. Whenever I'm dealing with older homes, I will pick up the phone for my client to get a quote up front to help estimate their monthly payments. So don't delay the decision to get your homeowners insurance. It's more important than you think.
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